Paperback: 360 pages
Publisher: For Dummies; 1 edition (September 10, 2013)
Language: English
ISBN-10: 1118642236
ISBN-13: 978-1118642238
Product Dimensions: 7.4 x 0.7 x 9.2 inches
Shipping Weight: 1.2 pounds (View shipping rates and policies)
Average Customer Review: 4.8 out of 5 stars See all reviews (33 customer reviews)
Best Sellers Rank: #251,686 in Books (See Top 100 in Books) #52 in Books > Business & Money > Finance > Corporate Finance > Venture Capital #1917 in Books > Business & Money > Small Business & Entrepreneurship > Entrepreneurship
I had a read a few "For Dummies" books right before I got this one and they were fast, easily digestible reads so I thought this one would be the same.Wrong.And that's not a ding on either the previous books I'd read or this one. It just goes to show that the "For Dummies" line doesn't have a 'one-size' fits all formula and in the case of "Venture Capital For Dummies", authors Nicole Gravagna and Peter Adams pack a lot of information so a reader who is unfamiliar with venture capital may need to take his or her time going through the chapters.At least, that was the case with me. There are five parts but I took the most time in "Part 1 - Getting Started with Venture Capital" because that's where the basics are explained. Someone familiar with venture capital may speed through this part more easily than I did but when I was glad that the authors took their time to explain what venture capital is.Part 2 was easier because that was pretty much about business relationships. Part 3 was a good reminder for any kind of business undertaking whether relating to venture capital or not because it dealt with business design and due diligence and I always appreciate a good chapter on risk mitigation. Part 4 is another part to take time in as it is about planning and pitch presentation. Part 5 is the usual "Tens" list.I just recently finished the book but I can already feel that I am forgetting stuff because it has that much information in it. Like I'm wondering again, "What is equity vs convertible debt again?" But the good thing is that I can look it up in this book.
I love this book because it does a lot more than just tell how to get access to capital through venture capital funds. It provides the thinking required to make the determination if that's even a good or best way to go. Other books often assume it is what the entrepreneur should do.I especially appreciated the advice concerning getting the first round price right no matter what type of investor one acquires. Some of this may not be intuitive. For example, it's bad to get a too-high valuation at first because it only puts pressure on getting a higher valuation later in order to get access to a venture capital firm.This book will help those that need some type of funding and those that help the former.
Great resource for the ins and outs of Venture Capital, the mindset of a Venture Capitalist, the types of companies that VC's look for, and how to communicate with them. It's a typical Dummies book because it presents the material in a very easy to understand manner, but this could be a text book at a top MBA program because it's so thorough. It talks about alternatives to VC funding such as Angels and Crowdfunding, deal structuring, company valuation, negotiating with VC's, and more. This should be required reading for every entrepreneur.
We're not ready to seek VC funding yet, but we've been heading in that direction with one of our companies that is nearing commercialization of a product. I've been going to SBA and SBIR conferences and trying to get more insight into the process. So far those meetings have left a lot to be desired. Frankly, I learned more from this book than all of those meetings combined. I recommend this book as a good introduction to the topic. Certainly VC funding is a diverse process and every relationship developed is unique, but this book will guide you throughout the process.
Venture Capital For Dummies is a great book to understand how a VC or any investor in general sees and expects from your business. You might think as the company founder or business owner you know the best on how you run, structure, and present your business. That is fine until you need outside investor which then you will need to learn the rules of the game of Venture Capital (e.g. The rate of return they are looking for, Lengthy due diligence process/checklist, Risk assessment, etc). You will also learn how to value your companies and determine if VC funding is right for your company. And learn how to pitch your companies and secure that funding that you are looking for. This book pretty much cover everything that you need to know before meeting and pitching to Venture Capital. The only thing this book doesn't provide is the VC meeting schedule or contact name itself which in this case you need to figure it out yourself. They give you some example where to start looking though (places/people such as: service providers, angel investors, networking events, pitch events, mentors, incubator staffs, funding websites, online search). Overall, this is a great book for entrepreneur especially if you are thinking about raising funds in the future.Here's another list of interesting info form this book on ten ways to lose a deal:1. Being uncoachable2. Having a critic (build relationship with the people you seek capital)3. Quoting an inflated valuation (often quoted as #1 reason deal went sour)4. Pitching an idea (instead post-MVP or post-revenue)5. Being invisible or forgotten6. Confusing people7. Pitching to only one investor (play the numbers game)8. Having connection in only one town9. Failing to study up on your investors10. Pitching your product instead of your dealSidarta Tanu
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